The calculations below outline how an intrinsic value for
MSG Networks
is arrived at by discounting future cash flows to their present value using the 2 stage method.
We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

PRICE RELATIVE TO MARKET

We can also value a company based on what the stock market is willing to pay for
it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing
when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for
MSG Networks's
earnings,
growth
and
assets
is considered below, and whether this is a fair price.

Price based on past earnings

Are
MSG Networks's earnings available for a low price, and how does
this compare to other companies in the same industry?

High Growth Checks

MSG Networks's earnings are expected to grow by 2.1% yearly, however this is not considered high growth (20% yearly).

MSG Networks's revenue is expected to grow by 1.5% yearly, however this is not considered high growth (20% yearly).

Past and Future Earnings per Share

The accuracy of the analysts who estimate the future performance data can
be gauged below. We look back 3 years and see if they were any good at
predicting what actually occurred. We also show the highest and lowest estimates
looking forward to see if there is a wide range.

Past performance checks

We assess
MSG Networks's performance over the past 5 years by checking for:

Has earnings increased in past 5 years? (1 check)

Has the earnings growth in the last year exceeded that of the
Media
industry? (1 check)

Is the recent earnings growth over the last year higher than the average annual growth over the
past 5 years? (1 check)

Is the Return on Equity (ROE) higher than 20%? (1 check)

Is the Return on Assets (ROA) above industry average? (1 check)

Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)

The above checks will fail if the company has reported a loss in the most recent
earnings report. Some checks require at least 3 or 5 years worth of data.
MSG Networks
has a total score of
3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Management

Management is one of the most important areas of a company. We look at
unreasonable CEO compensation, how long the team and board of directors have
been around for and insider trading.

CEO

AndreaGreenberg

COMPENSATION

$5,419,114

AGE

59

TENURE AS CEO

3.7 years

CEO Bio

Ms. Andrea Greenberg is the President and Chief Executive Officer of MSG Networks Inc. since 2015. Ms. Greenberg has more than 30 years of experience in the sports, entertainment and television industries. Ms. Greenberg served as the Executive Vice President of Madison Square Garden Company’s (“MSG”) Media business segment from 2010 until 2015. Ms. Greenberg was responsible for all aspects of the Media division, including programming, marketing, sales and operations, and directed all major transactional activities of the division. Ms. Greenberg previously served as the Executive Vice President of the MSG Entertainment business segment from 2008 to 2009. Prior to joining MSG, Ms. Greenberg spent more than 25 years at Rainbow Media Holdings, the former Cablevision Systems Corporation (“Cablevision”) programming subsidiary that spun-off from Cablevision in 2011 to become AMC Networks Inc., last serving as President of Rainbow Media Ventures from 2004 to 2008. Ms. Greenberg serves as a director of The Garden of Dreams Foundation since 2015.

CEO Compensation

Andrea's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.

Andrea's remuneration is higher than average for companies of similar size in Germany.

Management Team Tenure

Average tenure and age of the
MSG Networks
management team in years:

3.7

Average Tenure

50

Average Age

The tenure for the MSG Networks management team is about average.

Management Team

Jim Dolan

TITLE

Executive Chairman of the Board

COMPENSATION

$9M

AGE

63

Andrea Greenberg

TITLE

President & CEO

COMPENSATION

$5M

AGE

59

TENURE

3.7 yrs

Bret Richter

TITLE

Executive VP

COMPENSATION

$2M

AGE

48

TENURE

3.7 yrs

Dawn Darino-Gorski

TITLE

Senior VP

COMPENSATION

$1M

AGE

50

TENURE

3.7 yrs

Lawrence Burian

TITLE

Executive VP

COMPENSATION

$1M

AGE

48

TENURE

9.3 yrs

Ari Danes

TITLE

Senior Vice President of Investor Relations

TENURE

4.4 yrs

Adam Levine

TITLE

Executive Vice President of Business Affairs

Board of Directors Tenure

Average tenure and age of the
MSG Networks
board of directors in years:

News

Simply Wall St News

Company Info

Description

MSG Networks Inc. engages in the sports production, and content development and distribution businesses in the United States. The company owns and operates MSG Network and MSG+, which are regional sports and entertainment networks. It also operates MSG GO that provides live streaming and video on demand, as well as a Website and social media platforms for its brands. The company was formerly known as The Madison Square Garden Company and changed its name to MSG Networks Inc. in October 2015. MSG Networks Inc. was founded in 1969 and is based in New York, New York.

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